Defining long-term program goals is essential before undertaking a major facilities project. Once the facilities choice has been made, programming is "cast in concrete" and changes are very hard to make. Program goals, organizational growth and facilities are linked in the following ways:

1. Facilities are a means to realizing a programmatic end.
   Having clear program goals will help you determine what facility best supports those goals. If those goals are unclear or programming is in flux, then making a long-term facilities choice could be premature. In such a situation, renting might make more sense than buying or undertaking a major leasehold improvement.
2. New facilities accelerate an organization's growth.
   This is especially true for smaller non-profits (with budgets of $400,000-800,000) for whom growth brings the encumbrances of a larger organization: more people, a management infrastructure and many more external stakeholders. Small organizations, used to being able to make rapid program shifts, often fail to realize they lose much of their program flexibility as they get larger.

A successful plan will entail moving forward while retaining a balance among programming, finances, management capacities and facility. This is difficult because facilties change infrequently: they often appear to be once-in-a-lifetime "opportunities"; and they usually involve large dollar amounts and major organizational changes. These major changes and large costs can throw an organization off balance. For example, programming and occupancy costs could increase much faster than revenues. Such imbalances can threaten an organization's ability to survive.

The plans need to be at least as long-term as the facilities commitment, and preferably longer, since facilities are a means to an end. Seizing a facility "opportunity" before making fundamental program choices forces managers to create new programming - and build a new audience - to make the new space work.

© 2000 by the NONPROFIT FINANCE FUND

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